Sun Hung Kai sees 2012 sales of S$5.3 billion

Sun Hung Kai Properties forecast that sales for the next fiscal year will hit HK$32 billion (S$5.3 billion), an executive from the company said Thursday.

Hong Kong’s largest developer by market capitalisation predicted that sales in the city alone would hit HK$26.8 billion next fiscal year, which runs through June 2012.

The company also called for a revision of Hong Kong’s special stamp duty, imposed a year ago.

“Short-term speculators are basically out of the market now,” said Mr Victor Lui, an executive director of Sun Hung Kai Real Estate Agency.

“The current market is more accessible for end users.”

With home prices in Hong Kong already correcting, the Hong Kong government on Thursday confirmed it is looking to ease property-purchase restrictions if the economy worsens. It did not give specifics but said the Hong Kong Monetary Authority would act on mortgages.

There is also speculation it may review Hong Kong’s special stamp duty, which imposes a transaction tax of up to 15 per cent on the value of homes sold quickly.

“The property market has been slowed down due to the volatility of the US and Europe economies,” Mr Lui said. “If the Hong Kong government can adjust the SSD policy sooner, it will be good for the stability and healthiness of the market.”

Mr Lee Wee Liat, property analyst at Samsung Securities, noted the forecast for next year was not that big a change from the HK$28 billion target set for this fiscal year.

“In this kind of market condition, if you guide up, people will be cautious,” Mr Lee said. “You don’t expect much negative comment from a developer.”

Sun Hung Kai Properties, with a market capitalisation of US$32.7 billion (S$42 billion), is the largest developer in Asia.

Source : Today – 9 Dec 2011

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